GBH ventures into O&G business

  • Business
  • Wednesday, 02 Jul 2014

KUALA LUMPUR: Ceramics ware manufacturer Goh Ban Huat has unveiled its foray into the oil and gas services business following a series of announcement on Wednesday, in which the company revealed it was taking a stake in Globalmariner Offshore Services Sdn Bhd (GMOS).

In its statement to Bursa Malaysia, GBH said it was acquiring a 35% stake in GMOS from Dynac Sdn Bhd and the directors of GMOS for RM38mil.

GMOS is principally engaged in the business of providing consulting and management services specialising in floating production storage and offloading (FPSO) and offshore marine services.

GBH said it arrived at the price after having factored in the outstanding secured orderbook of GMOS of RM304mil, as well as its future earnings potential.

“The proposed acquisition would provide an immediate avenue for the company to venture into the oil and gas industry specialising in FPSO. In addition, GMOS is a Petronas license holder that is expected to have competitive advantages in bidding for any FPSO tenders in the future," it explained.

The deal is expected to be completed by the third quarter of 2014.

In a separate announcement, GBH said it had also moved to acquire the entire equity interest in Dynac Sdn Bhd for RM632mil in a reverse takeover (RTO) exercise, paying RM210mil in cash and raising RM422mil through the issuance of new GBH shares at an issue price of RM2.

Dynac provides contract work and services for process cooling system and equipment, cable support solutions, sales of spare parts, engineering, procurement, construction and commissioning works for the O&G industries and general industries.

“The proposed RTO exercise is conditional upon approvals and consents being obtained from among others the shareholders of GBH, Securities Commission Malaysia and Bursa Malaysia Securities Bhd,” GBH said.

It also announced it was raising part of funds for the corporate exercise by selling nine parcels of land measuring about 13.9 acres to Keladi Maju Bhd on Jalan Segambut, Kuala Lumpur for RM192.3mil.

The sales and purchase agreement was signed on July 2, 2014

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